The Koran says that Jews are the People of the Book, and should be revered. Muslims believe in the Jewish prophets. The Old Testament is incorporated into the Koran.

The part of the Koran you are misquoting says that Muslims should try to make peace with all non-Muslims, and then make war with those who refuse to sign peace treaties. Sure, it's not as nice as Jesus Christ's "turn the other cheek". It's more along the lines of the Jewish God's genocidal exhortations to Joshua ("exterminate your enemies").